The promotion of green and sustainable financial development has created both new opportunities and challenges for the financial system in Vietnam, according to experts.
Green bonds are an innovative tool for businesses to mobilise financing from the private sector such as banks, financial institutions, and especially foreign capital.
Capital flows into green growth projects have still seen positive signals despite adverse impacts from the COVID-19 pandemic on foreign direct investment (FDI) in Vietnam.
Incentives are needed to encourage small- and medium–sized enterprises (SMEs) to join green growth projects, said Hoang Thi Hong, Director of the SMEDF under the Ministry of Planning and Investment.